A dividend which is a return to shareholders of a portion of their original capital investments is known as a
A) liquidating dividend.
B) property dividend.
C) cash dividend.
D) participating dividend.

Question

Quizplus · Accepted Answer

A liquidating dividend is paid out to shareholders when a company is in the process of liquidation or closing down its operations. It is a return of the shareholders' original capital investments rather than a distribution of profits. Property dividends are paid out in the form of assets rather than cash, cash dividends are the regular payments made to shareholders from the company's profits, and participating dividends are a type of preferred stock where shareholders receive a higher dividend payout if the company's profits exceed a certain level.

A Dividend Which Is a Return to Shareholders of a Portion